How to Invest in Mutual Funds in Pakistan

How to invest in Mutual Funds in Pakistan:Mutual funds are collective investment schemes where money from different investors is pooled for the purpose of investing in equity, debt and money market securities, stocks and bonds. After earn profit, it is given back to the investor as capital appreciation. Like the stock exchange, each shareholder will face the loss or gain in the fund.

Mutual Funds Association of Pakistan is the licensed body by Pakistan government for the mutual fund industry. Asset Management Companies (AMCs) and Investment Advisory ( IAs ) licensed by SECP to launch Mutual Funds and perform investment.In this post, we’ll describe the very important question that you want to ask: “How to invest in Mutual Funds in Pakistan?” …

Categories of Mutual Funds

There are several categories of mutual funds. You must be well-versed with these categories & must know the difference between these categories, understand their prose & cones in order to Invest in Mutual Funds in Pakistan so you get the best ROI.

Close-ended mutual funds

Close-ended mutual funds scheme has fixed maturities and you can not withdraw your investment before maturity.

Open-ended mutual funds

In open Ended mutual funds scheme at any stage you can withdraw your money within a few days if you want.

Procedure to Invest in Mutual funds in Pakistan

Systematic Investment Plans or SIPs is very common procedure among the investors in order to invest in Mutual Funds in Pakistan but most people have not a clear idea about the SIPs and they do not know how to start a SIP. SIP provides you an online platform on daily, monthly and quarterly bases. Most investment advisors advise the people to invest in equity schemes by SIPs as It will surely increase your cost. Another advantage of investing through SIP is it compels the investors irrespective of the condition of the market. By investing by SIP you will follow three steps

1.Documents Required

In order to start procedure to invest in Mutual Funds in Pakistan, you must have these documents with you.

Copy of CNIC

Application / Account Opening Form

Purchase of Units Form

Zakat Affidavit (Optional)

KYC Form (Know your customer)

FATCA Form §(Foreign Account Tax Compliance Act)

Cheque in favor of Trustee of the Fund

Your address proof (Bank statement, Driving Licence, Utility Bill)

A Passport Size Photograph

2.Become a KYC compliant

It is necessary you should comply with the Know Your Customer (KYC) requirements in order to invest in mutual funds in Pakistan. For this, you will provide some basic information Name, Mobile Number, Date of Birth, Address. Now you become KYC Compliant online on the eKYC channel.Even many fund houses provide this facility itself. You will visit their website and simply start the process. On the website of eKYC, you fill the information and upload a soft copy of your PAN and address proof. After applying online a video call is scheduled to confirm your physical appearance.

3. Start the SIP online

When you become KYC Compliant, you can start the SIP online. Visit the website of fund house in which you want to invest. Click on the register now button or New Investor button and fill the basic information. A unique username and password would choose for online transacting. Your bank detail is needed here for monthly debit. Now you put the username and password and select your desire fund scheme for investing. You can choose any date for monthly SIPs. Than SIP will start after 40 days.

Mutual Funds Association in Pakistan

There are different mutual funds schemes in Pakistan for investing where you can invest your wealth and earn the profit in future.